Latest figures reveal significant drop in activity across England and Wales
The proportion of first-time buyers (FTBs) in the housing market across England and Wales has declined sharply since the start of the year, according to new data from home move comparison site reallymoving.
FTBs represented 63.3% of home movers in January, but this figure fell to 56.7% by August, marking a 6.6 percentage point decrease. Despite a 3.1% reduction in the average price paid by first-time buyers—from £280,610 in January to £271,784 in August—affordability issues continue to deter many prospective buyers.
The decline in FTB market share has been observed in every region during 2025. The most pronounced falls occurred in the South West, Yorkshire & Humber, the East of England, and the North East, each experiencing a drop of more than nine percentage points. In the North East, the average price paid by first-time buyers rose by 9% between January and August, coinciding with one of the largest decreases in FTB share, underscoring the impact of affordability pressures. The smallest decreases were recorded in the East Midlands (down 2.6 percentage points) and London (down 2.9 percentage points).
London continues to have the highest proportion of first-time buyers, with 68% of movers in the capital purchasing their first home. Factors such as high rental costs and financial support from family members are likely contributing to this trend. The average price paid by FTBs in London fell by over £12,000 in the year to August 2025, from £454,800 to £442,443, a decrease of 2.7%.
The type of properties favoured by first-time buyers is also shifting. Fewer are choosing flats or new builds, with the proportion of FTBs buying flats dropping from 29.7% in January to 26.6% in August. Purchases of new build homes have fallen by nearly a quarter over the same period, from 12.8% to 9.7%, reaching the lowest level since 2016, though a separate report from Skipton Building Society suggests that a higher proportion of aspiring first-time buyers are now considering newly built homes.
Changes to stamp duty thresholds in March, which reduced the relief for FTBs from £425,000 to £300,000, may have influenced some buyers to bypass the traditional entry-level property and opt directly for a house, further affecting transaction volumes.
“These figures highlight the scale of the challenge facing first-time buyers in 2025,” said Rob Houghton (pictured right), founder and chief executive officer at reallymoving. “Prices may be softening and mortgage rates inching down, but not nearly enough to offset the affordability pressures being felt in every region of the country.
“First-time buyers face trying to save for a deposit amid rising living costs and secure a mortgage at a sustainable repayment rate, with very little targeted government support to help them onto the ladder.
“Unless we start to see a dramatic increase in housebuilding, as has been promised, and targeted measures to boost affordability, first-time buyers are unlikely to regain their market share any time soon. Beyond restricting market mobility, this will undermine the financial security of young people and erode the long-term stability that home ownership can provide.”
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